If a Firm Finds Out That Its Marginal Revenue Is

question 54

Multiple Choice

If a firm finds out that its marginal revenue is greater than its marginal cost, it should:

• A)increase production and sales.
• B)decrease production and sales.
• C)encourage the entry of other firms into the market.
• D)keep raising its selling price till marginal revenue equals marginal cost.
• E)change nothing because profits are maximized.

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Definitions:

Piecewise Function

A mathematical function defined by multiple sub-functions, each applying to a certain interval of the overall domain.

Water Meter

A device used to measure the volume of water usage in residential, commercial, or any other building for the purpose of billing and monitoring.

CCF

Stands for hundred cubic feet and is a unit of measurement often used for billing natural gas or water usage.

Piecewise Function

A mathematical function defined by multiple sub-functions, each applying to a certain interval of the main function's domain.